How do I invest pretax dollars in an IRA. I receive a paycheck that's been taxed already

Question

My focus is investing PRETAX dollars. I don't want Uncle Sam to tax my paycheck then tax my IRA either early or late. That's being taxed twice right?

Answer 1

The only way to get pre-tax money into a retirement plan is in a 401K...your employer gives the money to your plan BEFORE taxes are taken out.

As for IRA s ...you would get a little tax break at the end of the year in a traditional IRA...( because you deduct your contribution from your income...so it " sort of" accomplishes what YOU are looking to do...)

Once the taxes have been taken out, there is only the long-term benefits of a ROTH IRA to help you out... BUT..don't belittle that idea !!

A ROTH will multiply your investment many times over...and you are NEVER taxed on all those gains...If you really, really think about it...your money is working for you ...making money...and THAT money is working for you...for YEARS...it's like having a " silent partner" or a second identity....who is doing what you wanted to do in the first place: MAKING MONEY AND NOT BEING TAXED ON IT.  

Read that again, until you see it clearly... " if you really, really...

Answer 2

My mom does that stuff for a living...She just did a roll over from a 401K that I had with a big corp. to an IRA I am not sure how she does it but if you are interested in it e-mail me and I will have her contact you about it. [e-mail]...she is super good at it I have no clue but she does it all the time and makes people a lot of money.  Good luck....Jenny

Answer 3

To invest pretax dollars in an IRA you need to open a Traditional IRA.  Instead of being taxed before you put it in you will be taxed when you make withdrawals.  If you have a Roth IRA you pay tax before you put it in and no tax on earnings or withdrawals.

Answer 4

What you want to fund the Irish Republic Army? they are disbanded